Ma, who will be inaugurated on May 20,

also said that Taipei will stop using "dollar diplomacy" to win recognition from foreign countries as the practice can easily tarnish Taiwan's image.

Ma's call, made in a speech before the annual session of the Republic of China (ROC) Association of International Relations, came at a time when the pitched diplomatic battle for allies between China and Taiwan has been highlighted by a checkbook diplomacy fraud case in which Taiwan tried to secure Papua New Guinea (PNG) as an ally.

Referring directly to the scandal that has disgraced the Democratic Progressive Party (DPP) government and the Ministry of Foreign Affairs, he denounced "money diplomacy," saying he was very distressed that notwithstanding its remarkable achievements in every area.

The incoming president said that the nation can learn from Singapore's fundamental "CORE" values (connectivity, openness, reliability, and entrepreneurship) to expand its push for international space.

"It is important to find a flexible method that also maintains Taiwan's dignity to help the nation return to the international community," Ma said, while pushing for a diplomatic truce.

"We will negotiate with China over Taiwan's international space," Ma emphasized, saying that only when Taiwan cooperates well with the international community will the interests of all of Taiwan's 23 million people be safeguarded.

As part of this new era of openness, pragmatism, and negotiation, Ma said his administration will also soon open wide-ranging negotiations with China on economic cooperation, including the launch of direct flights and attracting more Chinese tourists to Taiwan.

"Taiwan will have a very different international presence if its diplomacy can be associated with cross-strait (policies)," noted Ma. "Taiwan has the wisdom, vitality, and determination to create a healthier international environment for the country."

While commenting on Taiwan's recent diplomatic blunder in which US$29.8 million aimed to get PNG to drop China and recognize Taiwan was embezzled by two middle men, Ma said the scandal was widely reported by foreign media and has hurt Taiwan's international image.Ma said he will use a more pragmatic attitude to promote foreign ties.

"In the past Taiwan, by safeguarding its dignity while being pragmatic, succeeded in joining the World Trade Organization and other bodies."

"In the future, when we seek to join the World Health Organization or other international groupings, we must be more pragmatic and flexible," he said.

Ma stressed that it is now an era of negotiation, so Taiwan will launch trade with China and seek a "diplomatic ceasefire" with China -- meaning Taipei and Beijing will not try to win over each other's diplomatic allies.

Taiwan is fighting an uphill battle to save ties with its dwindling number of diplomatic allies -- now numbering 23.

It is unclear how Bejing will respond to Ma's overture, but experts believe that after Ma takes office, cross-strait relations could improve significantly because Ma has pledged to veer away from the outgoing DPP administration's rigid and restrictive approach in managing relations with China.

In his address, Ma further said that negotiating free trade agreements with the United States, Japan, South Korea, and the Association of Southeast Asian Nations (ASEAN) countries were also top priorities of his administration.

He stressed that Taiwan has specific geographic advantages that could augment the nation's future development.

In order to capitalize on Taiwan's unique location and its advantages, Ma pledged that his administration will devote itself to greater interaction with the international community.

He criticized the DPP government for steering the country away from international discourse after taking power in 2000.

"To connect Taiwan more with the world, we (the new government) will be more open to expanding the scope of Taiwan and in loosening restrictions in its economic policies," Ma promised.

Taiwan has to keep up with the world and to develop a better understanding of the outside world rather than isolating itself from the international community in the era of globalization, he added.